"The company continues to discuss potential participation in a range of proposed gas developments in PNG with a number of international companies," it said.

CNPC Exploration is an equal joint venture between China National Petroleum Corp and its Hong Kong-listed subsidiary PetroChina.

PNG-focused Oil Search is listed in Port Moresby and Sydney. It is PNG's largest company and the PNG Government is its biggest shareholder.

Meanwhile, the company says fire damage has prompted it to suspend production at its Nabrajah oil field in Yemen, while it is also abandoning its second consecutive dry well in partnership with Arc Energy.

On Friday, Oil Search said a minor fire had broken out at its Nabrajah field central production facility, forcing a shutdown for one week while repairs are done.

"The fire was extinguished within 45 minutes and there were no injuries to personnel," the company said.

Oil Search holds a 28.33% stake in the field, while DNO ASA is operator with 56.67% and the Yemen Company has a 15% free-carried interest.

Elsewhere in Yemen, Oil Search and Arc Energy are plugging and abandoning their Reeb-1 exploration well, their second dry hole to be drilled in Block 35.

On Friday, Arc said the joint venture ran wireline logs over the well, with no indication of the presence of moveable hydrocarbons.

Reeb-1, which reached a total depth of 3580m, is about 35km east of Oil Search's Al Magrabah-1 well, which was plugged and abandoned earlier this month.

Participants in Block 35 are Oil Search 32.5% (operator), Virgin Resources 37.5%, Arc Energy 15%, MND 10% and the Yemen Company 5%.

The Yemen Company is carried by the other joint venture participants.